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WD-40
🇺🇸 NASDAQ:WDFC
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Feb 28, 2022

WD-40 Q2 2022 Earnings Report

WD-40's net sales increased by 16% and diluted EPS was reported at $1.41.

Key Takeaways

WD-40 Company reported a strong second quarter with a 16% increase in net sales compared to the prior year fiscal quarter. Diluted earnings per share were $1.41, up from $1.24 in the prior year. The company is facing a challenging inflationary environment, which has deteriorated gross margin.

Total net sales for the second quarter were $130.0 million, an increase of 16 percent compared to the prior year fiscal quarter.

Net income for the second quarter was $19.5 million, an increase of 13 percent compared to the prior year fiscal quarter.

Diluted earnings per share were $1.41 in the second quarter, compared to $1.24 per share for the prior year fiscal quarter.

Gross margin was 50.4 percent in the second quarter compared to 55.4 percent in the prior year fiscal quarter.

Total Revenue
$130M
Previous year: $112M
+16.2%
EPS
$1.41
Previous year: $1.24
+13.7%
Gross Margin
50.4%
Ad & Promo Expenses
$5.6M
SG&A Expenses
$34.8M
Gross Profit
$65.5M
Previous year: $62M
+5.7%
Cash and Equivalents
$43.3M
Previous year: $72.4M
-40.1%
Free Cash Flow
$3.6M
Previous year: $14.8M
-75.6%
Total Assets
$423M
Previous year: $406M
+4.2%

WD-40

WD-40

WD-40 Revenue by Segment

WD-40 Revenue by Geographic Location

Forward Guidance

The Company issued the following updated guidance for fiscal year 2022: Net sales growth is projected to be between 7 and 12 percent with net sales expected to be between $522 million and $547 million. Diluted earnings per share is expected to be between $5.14 and $5.27 based on an estimated 13.7 million weighted average shares outstanding.

Positive Outlook

  • Net sales growth is projected to be between 7 and 12 percent.
  • Net sales expected to be between $522 million and $547 million.
  • Gross margin percentage for the full year is expected to be between 50 and 51 percent.
  • Advertising and promotion investments are projected to be between 5 and 6 percent of net sales.
  • The provision for income tax is expected to be between 20 and 21 percent.

Challenges Ahead

  • Net income is projected to be between $70.7 million and $72.5 million.
  • Diluted earnings per share is expected to be between $5.14 and $5.27 based on an estimated 13.7 million weighted average shares outstanding.
  • Guidance does not include any future acquisitions or divestitures or the impact of fluctuating foreign currency exchange rates.
  • Assumes crude oil costs will be between $100 and $120 per barrel.
  • Unanticipated inflationary headwinds and other unforeseen events may further impact the Company’s financial results.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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